Cash Sales Can't Take Place Before Commencement Of Business: Delhi ITAT Deletes Addition U/s 69A On Receipts From Such Sale

In a recent decision, Delhi ITAT ruled that cash sales can constitute the commencement of business, deleting addition under section 69A for unexplained receipts from sale. The tribunal emphasized that mere cash transactions cannot be a ground for invoking section 69A, especially when the taxpayer demonstrated business commencement through sales. This decision underscores the importance of substantiating business activities to avoid unwarranted tax implications.